# Capital Intensity Mediation: Z -> Investment/GDP -> CA

| Variable | Step 1: Z->K | Step 2: Z->CA | Step 3: Z+K->CA | Step 4: K->CA |
|:---|---:|---:|---:|---:|
| Z_1 | 39.2379*** | 7.0447 | 49.2430*** | |
| | (13.7585) | (13.0224) | (12.0482) | |
| Z_2 | -4.3562** | -0.8193 | -6.1310*** | |
| | (2.0594) | (1.9525) | (1.7981) | |
| Z_3 | 0.1334 | 0.0258 | 0.2098*** | |
| | (0.0838) | (0.0795) | (0.0730) | |
| fiscal_bal_gdp | -0.0497** | 0.4492*** | 0.4122*** | 0.4111*** |
| | (0.0208) | (0.0351) | (0.0318) | (0.0320) |
| nfa_gdp_lag | 0.2132 | -0.0267 | -0.2865 | -0.0528 |
| | (0.1736) | (0.2339) | (0.2168) | (0.2157) |
| rgdp_growth | 0.0940*** | 0.2221*** | 0.3300*** | 0.3316*** |
| | (0.0130) | (0.0222) | (0.0217) | (0.0217) |
| log_rel_opw | -0.5925 | 2.2313*** | 3.1587*** | 3.7856*** |
| | (0.4721) | (0.4338) | (0.4073) | (0.2915) |
| kaopen | -0.1084 | -0.0350 | -0.5844*** | -0.5613*** |
| | (0.1694) | (0.2007) | (0.1841) | (0.1840) |
| capital_intensity | | | -0.6843*** | -0.6621*** |
| | | | (0.0227) | (0.0227) |
|:---|---:|---:|---:|---:|
| N | 3917 | 4399 | 3887 | 3887 |
| R² | 0.1098 | 0.1456 | 0.2793 | 0.2443 |
| Countries | 150 | 162 | 150 | 150 |

*Panel GLS with country and year fixed effects. Standard errors in parentheses.*
*\*p<0.1, \*\*p<0.05, \*\*\*p<0.01*